Endogeneizing know-how flows through the nature of R&D investments

In this paper we carefully link knowledge flows to and from a firms innovation process with this firms investment decisions. Three types of investments are considered: investments in applied research, investments in basic research, and investments in intellectual property protection. Only when basic research is performed, can the firm effectively access incoming knowledge flows and these incoming spillovers serve to increase the efficiency of own applied research.. The firm can at the same time influence outgoing knowledge flows, improving appropriability of its innovations, by investing in protection. Our results indicate that firms with small budgets for innovation will not invest in basic research. This occurs in the short run, when the budget for know-how creation is restricted, or in the long-run, when market opportunities are low, when legal protection is not very important, or, when the pool of accessible and relevant external know-how is limited. The ratio! of basic to applied research is non-decreasing in the size of the pool of accessible external know-how, the size and opportunity of the market, and, the effectiveness of intellectual property rights protection. This indicates the existence of economies of scale in basic research due to external market related factors. Empirical evidence from a sample of innovative manufacturing firms in Belgium confirms the economies of scale in basic research as a consequence of the firms capacity to access external knowledge flows and to protect intellectual property, as well as the complementarity between legal and strategic investments.

Decentralization and the Gains from Monitoring

This paper analyzes the delegation of contracting capacity in a moral hazard environment with sequential production in a project which involves a principal and two agents. The agent in charge of the …nal production can obtain soft information about the other agent's effort choice by investing in monitoring. I investigate the circumstances under which it is optimal for the principal to use a centralized organization in which she designs the contracts with both agents or to use a decentralized organization in which she contracts only one agent, and delegates the power to contract the other agent. It is shown that in this setting a decentralized organization can be superior to a centralized organization. This is because the principal is better off under monitoring and the incentives for an agent to invest in monitoring can be higher in a decentralized organization. The circumstances under which this is true are related to the monitoring costs and the importance of each agent for production. The results explain the recent application of the design-build method in public procurement. Journal of Economic Literature Classi…cation Numbers: D23, D82, L14, L22. Keywords: Decentralization of Contracting, Monitoring, Moral Hazard.

Is it redistribution or centralization? On the determinants of government investment in infrastructure

The dilemma efficiency versus equity, together with political partisan interests, has received increasing attention to explain the territorial allocation of investments. However, centralization intended to introduce or reinforce hierarchization in the political system has not been object as of now of empirical analysis. Our main contribution to the literature is providing evidence that meta-political objectives related to the ordering of political power and administration influence regional investment. In this way, we find evidence that network mode’s (roads and railways) investment programs are influenced by the centralization strategy of investing near to the political capital, while investment effort in no-network modes (airports and ports) appears to be positively related to distance. Since investment in surface transportation infrastructures is much higher than that in airports and ports, and taken into account that regions surrounding the political capital are poorer than the average, we suggest that centralization rather than redistribution has been the driver for the concentration of public investment on these regions.

Accounting conservatism and firm investment efficiency

Conservatism, through the timelier recognition of losses in the income statement, is expected to increase firm investment efficiency through three main channels: (1) by decreasing the adverse effect of information asymmetries between outside equity holders and managers, facilitating the monitoring of managerial investment decisions; (2) by increasing managerial incentives to abandon poorly performing projects earlier and to undertake fewer negative net present-value investments; and (3) by facilitating the access to external financing at lower cost. Using a large US sample for the period 1990-2007 we find a negative association between conservatism and measures of over- and under- investment, and a positive association between conservatism and future profitability. This is consistent with firms reporting more conservative numbers investing more efficiently and in more profitable projects. Our results add to a growing stream of literature suggesting that eliminating conservatism from accounting regulatory frameworks may lead to undesirable economic consequences.

Studying the micro-angels approach to micro-investment decisions

Purpose: The paper analyzes the micro-angels investment behaviour, looking both to the criteria used in the selection of their investment projects and to the characteristics of their guidance role during the investment period. Design/Methodology/Approach: The paper focuses on a double bottom line movement of French micro-angels clubs that has been operating since 1983. Our primary source of data is an online survey carried out during March 2012, asking members of clubs all over France for different aspects of their procedures. Findings: Our findings suggest that micro-angels are interested in small, socially or environmentally friendly projects having the potential to contribute to the development of their neighbourhood. We find that women are even more interested than men in such projects. Educated micro-angels value entrepreneurial motivation and understanding of the project more than less-educated micro-angels. We also point out the factors that micro-angels consider important in accompanying enterprises. Here we find that gender makes little difference. However, retired micro-angels value financial diagnosis made conjointly with entrepreneurs, while both active micro-angels and educated micro-angels value more the use of their network to help micro-entrepreneurs. Practical/Social Implications: Given the potential benefits of micro-angels investing and guiding the development of micro-enterprises, a social micro-angel investment on a major scale in developing countries could help in tackling some of the problems faced by the development of microfinance, such as the over-indebtedness of micro-entrepreneurs. Practitioners and new initiatives would gain from understanding what adaptations need to be made. Originality/value: We expect to add to the venture capital theory to take into account non-economic motives.

Ecologies of Value in a Wall Street Trading Room

Our task in this paper is to analyze the organization of trading in the era of quantitative finance. To do so, we conduct an ethnography of arbitrage, the trading strategy that best exemplifies finance in the wake of the quantitative revolution. In contrast to value and momentum investing, we argue, arbitrage involves an art of association-the construction of equivalence (comparability) of properties across different assets. In place of essential or relational characteristics, the peculiar valuation that takes place in arbitrage is based on an operation that makes something the measure of something else-associating securities to each other. The process of recognizing opportunities and the practices of making novel associations are shaped by the specific socio-spatial and socio-technical configurations of the trading room. Calculation is distributed across persons and instruments as the trading room organizes interaction among diverse principles of valuation.

Money doctors

We present a new model of money management, in which investors delegate portfolio management to professionals based not only on performance, but also on trust. Trust in the manager reduces an investor's perception of the riskiness of a given investment, and allows managers to charge higher fees to investors who trust them more. Money managers compete for investor funds by setting their fees, but because of trust the fees do not fall to costs. In the model, 1) managers consistently underperform the market net of fees but investors still prefer to delegate money management to taking risk on their own, 2) fees involve sharing of expected returns between managers and investors, with higher fees in riskier products, 3) managers pander to investors when investors exhibit biases in their beliefs, and do not correct misperceptions, and 4) despite long run benefits from better performance, the profits from pandering to trusting investors discourage managers from pursuing contrarian strategies relative to the case with no trust. We show how trust-mediated money management renders arbitrage less effective, and may help destabilize financial markets.

Strategic behavior and price discovery

The paper analyzes the effects of strategic behavior by an insider in a price discovery process, akin to an information tatonnement, in the presence of a competitive informed sector. Such processes are used in the preopening period of continuous trading systems in several exchanges. It is found that the insider manipulates the market using a contrarian strategy in order to neutralize the effect of the trades of competitive informed agents. Furthermore, consistently with the empirical evidence available, we find that information revelation accelerates close to the opening, that the market price does not converge to the fundamental value no matter how many rounds the tatonnement has, and that the expected trading volume displays a U-shaped pattern. We also find that a market with a larger competitive sector (smaller insider) has an improved informational efficiency and an increased trading volume. The insider provides a public good (a lower informativeness of the price) for the competitive informed sector.

Endogeneizing know-how flows through the nature of R&D investments

In this paper we carefully link knowledge flows to and from a firm s innovation process with this firm s investment decisions. Three types of investments are considered: investments in applied research, investments in basic research, and investments in intellectual property protection. Only when basic research is performed, can the firm effectively access incoming knowledge flows and these incoming spillovers serve to increase the efficiency of own applied research. The firm can at the same time influence outgoing knowledge flows, improving appropriability of its innovations, by investing in protection. Our results indicate that firms with small budgets for innovation will not invest in basic research. This occurs in the short run, when the budget for know-how creation is restricted, or in the long-run, when market opportunities are low, when legal protection is not very important, or, when the pool of accessible and relevant external know-how is limited. The ratio of basic to applied research is non-decreasing in the size of the pool of accessible external know-how, the size and opportunity of the market, and, the effectiveness of intellectual property rights protection. This indicates the existence of economies of scale in basic research due to external market related factors. Empirical evidence from a sample of innovative manufacturing firms in Belgium confirms the economies of scale in basic research as a consequence of the firm s capacity to access external knowledge flows and to protectintellectual property, as well as the complementarity between legal and strategic investments.

How to recognize opportunities: Heterarchical search in a Wall Street trading room

Our task in this paper is to analyze the organization of trading in the era of quantitativefinance. To do so, we conduct an ethnography of arbitrage, the trading strategy that bestexemplifies finance in the wake of the quantitative revolution. In contrast to value andmomentum investing, we argue, arbitrage involves an art of association - the constructionof equivalence (comparability) of properties across different assets. In place of essentialor relationa l characteristics, the peculiar valuation that takes place in arbitrage is based on an operation that makes something the measure of something else - associating securities to each other. The process of recognizing opportunities and the practices of making novel associations are shaped by the specific socio-spatial and socio-technical configurations of the trading room. Calculation is distributed across persons and instruments as the trading room organizes interaction among diverse principles of valuation.

Eficiència energètica aplicada a les instal·lacions de la Universitat de Vic

En termes generals, es pot definir l’Eficiència Energètica com la reducció del consum d’energia mantenint els mateixos serveis energètics, sense disminuir el nostre confort i qualitat de vida, protegint el medi ambient, assegurant el proveïment i fomentant un comportament Sostenible al seu ús. L’objectiu principal d’aquest treball, és reduir el consum d’energia i terme de potència contractat a la Universitat de Vic, aplicant un programa d’estalvi amb mesures correctores en el funcionament de les seves instal·lacions o espais. Per tal de poder arribar a aquest objectiu marcat, prèviament s’ha realitzat un estudi acurat, obtenint tota la informació necessària per poder aplicar les mesures correctores a la bossa més important de consum. Un cop trobada, dur a terme l’estudi de la viabilitat de la inversió de les mesures correctores més eficients, optimitzant els recursos destinats. L’espai on s’ha dut a terme l’estudi, ha estat a l’edifici F del Campus Miramarges, seguint les indicacions d’Arnau Bardolet (Cap de Manteniment de la UVIC). Aquest edifici consta d’un entresol, baixos i quatre plantes. L’equip de mesura que s’ha fet servir per realitzar l’estudi, és de la marca Circutor sèrie AR5-L, aquests equips són programables que mesuren, calculen i emmagatzemen en memòria els principals paràmetres elèctrics en xarxes trifàsiques. Els projectes futurs complementaris que es podrien realitzar a part d’aquest són: instal·lar sensors, instal·lar mòduls convertidors TCP/IP, aprofitar la xarxa intranet i crear un escada amb un sinòptic de control i gestió des d’un punt de treball. Aquest aplicatiu permet visualitzar en una pantalla d’un PC tots els estats dels elements controlats mitjançant un sinòptic (encendre/parar manualment l’enllumenat i endolls de les aules, estat d’enllumenat i endolls de les aules, consums instantanis/acumulats energètics, estat dels passadissos entre altres) i explotar les dades recollides a la base de dades. Cada espai tindria la seva lògica de funcionament automàtic específic. Entre les conclusions més rellevants obtingudes en aquest treball s’observa: · Que és pot reduir la potència contractada a la factura a l’estar per sota de la realment consumida. · Que no hi ha penalitzacions a la factura per consum de reactiva, ja que el compensador funciona correctament. · Que es pot reduir l’horari de l’inici del consum d’energia, ja que no correspon a l’activitat docent. · Els valors de la tensió i freqüència estan dintre de la normalitat. · Els harmònics estan al llindar màxim. Analitzant aquestes conclusions, voldria destacar les mesures correctores més importants que es poden dur a terme: canvi tecnològic a LED, temporitzar automàticament l’encesa i apagada dels fluorescents i equips informàtics de les aules “seguint calendari docent”, instal·lar sensors de moviment amb detecció lumínica als passadissos. Totes les conclusions extretes d’aquest treball, es poden aplicar a tots els edificis de la facultat, prèviament realitzant l’estudi individual de cadascuna, seguint els mateixos criteris per tal d’optimitzar la inversió.

Las relaciones económicas internacionales de la "España Europea"

[eng] Since the year 1986 in which Spain became full member of the European Communities, the quantity and quality of the Spanish international economic relations measured in terms of Balance of Payments have change dramatically. In the past Spanish workers moved to Europe. Now Spain is among the three major countries attracting immigrants from developing countries. In the past Spain received a lot of Foreign Investment, today many Spanish companies are investing abroad. The changes are not only due to membership to the EU but also to the Spanish accommodation to the Globalization.

Las relaciones económicas internacionales de la "España Europea"

[eng] Since the year 1986 in which Spain became full member of the European Communities, the quantity and quality of the Spanish international economic relations measured in terms of Balance of Payments have change dramatically. In the past Spanish workers moved to Europe. Now Spain is among the three major countries attracting immigrants from developing countries. In the past Spain received a lot of Foreign Investment, today many Spanish companies are investing abroad. The changes are not only due to membership to the EU but also to the Spanish accommodation to the Globalization.

An investment social network beside the Banco de Barcelona, an unusual case?

[cat] L’extensió de les activitats bancàries al segle XIX va ser liderat per alguns grups socials connectats amb el comerç, que van treure profit de la seva experiència i coneixement per estendre la seva influència al voltant del món del crèdit. A la historiografia espanyola, hi ha un conjunt de treballs que s’han centrat en aquesta gent, però en molts pocs casos s’ha fet una classificació que permeti detectar el conjunt de grups econòmics que han liderat el procés de modernització financera de l’Espanya de mitjans del segle XIX. El principal objectiu del treball és l’anàlisi dels grups socials que van formar el Banco de Barcelona entre 1844 i 1854. Aquesta institució va ser important per a la història financera i bancària d’Espanya per ser pionera en la seva activitat creditícia i d’emissió: a més, la seva experiència va servir com a base en la constitució d’un sistema financer modern a Espanya. En una societat com la catalana de mitjans del segle XIX, la confiança era un factor important per explicar la decisió d’invertir. L’aparició de noves companyies i les seves necessitats d’inversió van transformar el comportaments previs. Quin va ser el comportament dels inversors potencials? Va ser el grup que hi havia al voltant del banc el que va ascendir econòmicament en els anys centrals del segle XIX? La resposta és prou clara, els membres del consell d’administració del Banc de Barcelona formaven un grup apart dins dels grups que sorgeixen a l’economia catalana en el seu conjunt.

Confusió i borsa

En aquest article es conceptualitza la confusió en termes d'incertesa, considerant posteriorment com intervé en el procés de formació de creences i en la presa de decisions d'inversió i distingint tres tipus d'estratègies inversores, la diversificació, la concentració en empreses confiant en el pla empresarial i en la capacitat de gestió i, finalment, el seguidisme, referent a l'estratègia basada en confiar en tercers (rumors, notícies, experts, gurus ...). D'acord amb aquesta anàlisi, s'estableix la influència de la informació i la confusió en formació de les bombolles financeres i s'il·lustra amb l'exemple de la bombolla immobiliària i el crac borsari de 2008 a Espanya.